A long-awaited measure in India will effectively banned cryptocurrency. The government’s stance on digital currencies had expected to change recently. With the exception of a few exclusions to promote the technology and its aims, all private cryptocurrencies would be subject to the proposed ban. After the bill’s fate has decided, cryptocurrency values fell on Indian exchanges.
A Crypto-Focused Law
Legislators have expected to submit legislation regulating cryptocurrencies and official digital currency in the upcoming winter session. Official digital money issued by the Reserve Bank of India (RBI) will have created under the proposed legislation.
The attempt to ban all private cryptocurrencies looked to be a rehash of a January bill draught. In recent months, it has speculated that the government may seek to regulate cryptocurrencies as assets rather than payment methods.
While the bill’s description hasn’t changed, the particular differences are unknown because the latest draught isn’t yet published.
Market Effect
Several digital currencies reportedly lost value once the bill has announced. Bitcoin plunged over 13% on WazirX, while Shiba Inu and Dogecoin both sank around 15%. But, according to Glen Goodman, author of The Crypto Trader, the global impact has “very limited.”
When China banned cryptocurrencies, it didn’t fully destroy the market, he claimed. According to a video report by India Today, bitcoin trading is likely to continue as long as people buy from exchanges that match specific criteria.
According to the report, the bill may try to protect investors by limiting who can generate cryptocurrency.
‘Real Concerns’
The RBI, the country’s central bank, is said to hold conservative views on bitcoin, according to CoinDesk. In March 2020, the Indian Supreme Court lifted a two-year RBI ban on digital currency trading.
Following the Bank of England’s decision to ban cryptocurrencies last week, RBI governor Shaktikanta Das stated that blockchain technology can exist without cryptocurrencies.
Mr Goodman cited the recent Chinese prohibition and El Salvador’s intention to establish a Bitcoin city at the foot of a volcano. “Governments see it very differently,” he said. A threat, opportunity, or a hybrid. Mr Goodman claims the Chinese government wants to abolish all digital currencies save its own.
As far as I can tell, the Indian government is on board with this plan. Because China is doing it, they assume they can too.
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